French engineering giant Alstom raided in corruption probe

22 August 2008

French engineering giant Alstom, the third-largest power plant maker in the world, is in deep trouble with the arrest of its former manager in a corruption and money-laundering probe in Switzerland by the Swiss police.

The Swiss government said  in a statement, ''Police from the Federal Criminal Police and several French police officers carried out a series of house searches at various locations throughout Switzerland, including the offices of the Alstom AG in Baden."

The arrest and raid is related to suspected bribes worth tens of millions of euros made to officials or functionaries to secure tenders in Asia and South America between 1995 and 2003 by Alstom routed via Baden-based Alstom Prom A, which in some cases might have led to the awarding of contracts.

Alstom has confirmed the arrest but declined to shed any light on the ongoing investigations.

In May Swiss authorities found evidence of Alstom having paid 20 million euros (31 million dollars) to its marketing people working for it in Singapore, Indonesia, Venezuela and Brazil.

The French government also initiated an inquiry against the company following a tip received by Swiss authorities in November 2007.